To the maximum extent possible, arrangements for goods and services needed while abroad should be paid directly to the vendor from the General fund account and/or Agency account established for the study abroad program. There are, however, situations where payment for goods and services abroad must be rendered at the time they are acquired. In these situations, institutions may utilize several methods to make payments while abroad.

Any of the following (or a combination of) can be used for purchases and expenses associated with a studies abroad program:

Direct payment by an authorized institutional representative from personal funds, with a reimbursement request to follow

Study abroad programs should comply with all applicable BOR and institution policies regarding procurement and use of these payment methods.

The State Accounting Office and the Department of Administrative Services encourage faculty and university employees to use a personal credit card to pay for their travel expenses, whenever practical, and then to utilize travel expense reimbursement procedures.

Each institution will have the authority to determine the best way to handle payment of purchases and expenses for its study abroad programs. A petty cash fund may be established to pay for goods/services while in a foreign country. However, due to the risks and responsibilities associated with petty cash, its use should be limited to those situations where other payment alternatives are not an option.

Institutions using petty cash will need to have the following in place:

Petty cash application and approval process

Procedures for opening a petty cash bank account

Reconciliation guidelines

Closeout guidelines

Management, record-keeping, and reimbursement procedures

Many foreign countries offer refunds of sales taxes, often called value-added taxes or VAT, for purchases of goods and services associated with study abroad programs. Institutions should actively pursue these options, in order to reduce program costs to participating students.